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Norway Economic Forecast

By: EconomyWatch Content Team Date: 21 June 2010

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Based on welfare capitalism that includes free market activity and government intervention, Norway has a wealthy economy. Keep in mind that several primary areas of the economy are controlled by the government to include the oil and gas sector. This country also boasts rich natural resources such as oil, gas, hydropower, minerals, forests, and fish. Of these, Norway depends heavily on the oil and gas sector, which accounts for about 50% of the country’s exportation, as well as 30% of revenue for the country. For a long time, Norway was rated at number three for gas exportation but in recent years, it has moved to the number seven slot. While many European countries formed the European Union (EU), Norway did not but as a member of the European Economic Area the country still contributes largely to the EU. Because the government believes hydrocarbons production will eventually see a significant decline, the majority of revenue coming from the oil and gas sector is saved. For GDP growth, Norway was slow for a long time but from 2004 to 2007, growth improved. Even so, the global financial crisis caused a slowing of the country’s economy although now, things are starting to improve once again.

Norway GDP Forecast

When the global financial crisis hit, countries around the world were devastated. While Norway was also affected, it was far more resilience than other countries were. To overcome the challenges the country did face, several solid recovery measures have been initiated. During this time, the Norway GDP (Gross Domestic Product, Current Prices, US Dollars) experienced a drop although the oil and gas sector, along with the shipping industry were not included. For 2008, the GDP closed at $450.92 billion in US dollars. From that time to the end of 2009, only a 15.07% reduction was seen. With that, 2009 closed at $382.983 billion in US dollars, putting the country at number 23 for world rankings. Using specific data, experts now forecast 2010’s GDP at $433.30 billion, only a 13.14% increase from the previous year. Even for 2015’s numbers, no significant change is expected, closing this year at $492.529 billion in US dollars.

Norway Unemployment Forecast

The most recent reports show the Norway population just under 5 million. Of these, approximately 2.6 million are among the labor force, which includes people actually working and those actively searching for employment. The primary sectors that offer jobs include the agriculture, industry, and services sectors. Because so many job opportunities exist, the Norway unemployment rate is low, reported at 3.156%.

Norway Inflation Rate Forecast

Then when looking at the Norway inflation rate, an index of 2000=100 is used for average consumer prices. Data for 2008 put the inflation rate for this country at 3.77%. Over the following 24 months, a decline of 42.46% occurred, putting 2009’s rate at 2.167%. At that time, the country was listed for world rankings at number 110. In looking to the future, experts believe that 2010 will end up with an inflation rate of 2.52% and for 2015, 2.5%.

Norway Current Account Balance Forecast

In order for experts to determine the Norway current account balance, all transactions are used with the exception of those containing financial and capital items. In looking at 2008, the numbers were reported at $83.83 billion in US dollars. One year later, the current account balance was at $52.901 billion, putting the country at number 4 for world rankings. For future account balances, experts predict that 2010 will close at $72.86 billion, a 37.73% increase from 2009. For 2015, the change is not expected to be remarkable, ending at $74.199 billion (US currency).